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Tenants Exodus from London?

Tenants may relocate who will no longer be able to afford to stay in private rented housing if housing benefit is capped.

With estimates of almost 200,000 people who will no longer be able to afford to say in private rented housing if housing benefit is capped, many London councils are already taking precautionary measures to move people out of London by block booking bed-and-breakfast accommodation in towns like Reading and Luton and other towns outside the capital.

In the spending review recently announced, the Chancellor said that from next April housing benefit will be capped at £400 a week for a four-bedroom house, £340 for a three-bedroom home, £290 for a two-bedroom property and £250 for a one-bedroom property.

With landlords reluctant to reduce rents following the government's changes tenants will have no choice but to move out or face eviction by the landlords.

David Orr, chief executive of the National Housing Federation, thought that the changes would see people on the streets, saying: "Unless ministers urgently reconsider these punitive cuts, we could see more people sleeping rough than at any stage during the last 30 years"..

The government responded with a statement: "The current way that it is administered is unfair. It's not right that some families on benefits have been able to live in homes that most working families could not afford."



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